Uncertain if Engie will be dethroned for the mega contract to heat the city of Paris

Since the initiation of the call for tenders on September 14 last year, SHC by Sweden once again puts the concession contract to heat the City of Paris under the microscope. While it is still unclear who will come out as winner in the tender process, several indications can be seen already today; news sources state that not many actors are likely to jostle for the contract given the challenges ahead.

The district heating network stands as the largest in France and Europe, boasting nine energy production facilities and a distribution network spanning 521 kilometers. Currently, a subsidiary to Engie supplies heat to the nearly one million residents connected to the network in Paris and 16 surrounding municipalities. A significant portion of Paris’s social housing, commercial buildings, and all its hospitals, rely on this utility’s infrastructure. Dubbed a “mega deal”, the contract is projected to generate a staggering turnover of around 15 billion euros throughout its duration.

So, who will assume control of the contract? According to L’Obs, there’s not likely to be a lot of competition in the race; only two contenders have emerged: Engie Solutions, expected to continue with new partners, and Dalkia, an EDF subsidiary, in a consortium with RATP and Eiffage. “The challenge appears daunting, with the potential to cause a significant hike in heating costs for Parisians,” remarked the CEO of Coriance, the third-largest player in France’s heating networks. The CEO furthermore noted the immense investment needed, land scarcity, and the likely increase in the price of energy supplied by waste incineration plants. In essence, it is uncertain if Engie will be dethroned for the mega contract to heat the city of Paris.

Read more in article from Les Nouvel Obs

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Tokai Cobex Savoie to supply heat to the district heating network in Lyon

In a significant move to harness the dead heat from the industry and channel it back into the district heating network, it has been formally decided that the Tokai Cobex Savoie plant will be connected and provide heat to the Lyon Metropolitan area. On March 21, the Lyon Metropolitan Area, Tokai Cobex, and Dalkia (an EDF Group subsidiary) signed an amendment to the public service delegation contract for the heat provision to the metropolitan area. 

By 2025, the industrial facility, renowned for its expertise in synthetic carbon and graphite, is set to contribute 4 megawatts (MW) of thermal power and recover 30 gigawatt-hours (GWh) annually. This energy recovery initiative is poised to cover the heating of around 300 households, and offset emissions by an equivalent of 8,000 tons of CO2 yearly. 

This historic public-private partnership within the Lyon Metropolitan Area also includes plans for a wood-fired heating plant in Vaulx-en-Velin by 2026 and the extension of the district heating network to Saint-Priest by 2027. These initiatives aim to increase the number of households connected to the network from 85,000 to 200,000 by 2026. They also aim to increase the share of renewable and recovered energy from 65% to 72%, mitigating an estimated equivalent of 57,000 tons of CO2 emissions yearly. The initiatives are set to require an investment of €173 million, facilitated by the State through various funding sources, including the Ademe Heat Fund, the Banque des Territoires, and EDF. All in all, this expansion underscores Lyon Metropolitan Area’s commitment to sustainable energy solutions. 

Read more in article from Bref Eco

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Investments to connect more homes to the district heating network in Nantes

Nantaise d’Habitations (LNH), a social housing entity established in 2019 and operating under the Action Logement Group, oversees a vast rental portfolio comprising over 13,800 residences spread across Loire-Atlantique and Morbihan. Predominantly concentrated in the Nantes metropolitan area, which accounts for 87% of its housing inventory, the company has been actively investing in integrating its properties into the district heating network for quite some time. 

Following a substantial investment totaling €1,000,000 in 2023, LNH persists in its endeavor to link its housing stock with district heating networks. In 2024, plans are underway to potentially connect an additional 255 homes, marking a significant leap towards surpassing the 50% threshold of connected homes within its eligible housing portfolio. “We initiated our first connection back in January 1988,” elucidates Manuel Le Goff, deputy director overseeing the property technical department. 

As such, having already connected close to 500 homes in the preceding year, LNH is now eyeing the prospect of connecting another 255 residences in 2024. Among the projects underway, La Grande Noue, encompassing a total of 54 homes, is one of the four Nantes residences currently undergoing feasibility assessments for integration into the district heating network. The remaining three Nantes residences identified for potential connection are La Béraudière (46 homes), Le Milord (60 homes), and Leverrier PL (95 homes). 

Read more in article from Informateur Judiciare

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Sweden is at the forefront of decentralised heat networks technology. Our aim for “Sustainable Heating & Cooling by Sweden” is to facilitate knowledge sharing between British, French and Swedish stakeholders and develop and encourage environmental and economic best practice.

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